Category: Trade Unionism

ISSUE:

Whether the IDA is violative of the basic structure of the Constitution of India?

Whether the IDA violates the fundamental right to freedom of association under Article 19(1)(c) of the Constitution of India?

Whether the IDA violates the fundamental right to equality under Article 14 of the Constitution of India?

Whether laid-off workers are considered as employees for the purpose of trade union registration under the Trade Unions Act, 1926?

RULE:

A union must have a certain percentage or minimum number of active employees from the establishment as members to be registered.

A lay-off leads to temporary unemployment, but it does not end the employer-employee relationship.

ISSUE:

Whether the employees of the Madras Raj Bhavan are employed in an "industry" within the meaning of the Trade Unions Act, 1926, and thus entitled to register their union as a trade union under the Act?

Whether the Industrial Disputes Act and Trade Unions Act can be read together as forming one whole system?

Whether the Test of Cooperation between employers and employees has been satisfied in the present dispute?

Whether sale of unserviceable material and surplus garden produce amounts to a trade or business activity?

RULE:

The term "industry" includes any trade, business, manufacture, or undertaking which is broader than the common conception of trade or business and implies cooperation between the employer and employees for achieving a particular result.

To register a union under the Trade Unions Act, the employees must be engaged in an activity that qualifies as a trade or business.

ISSUE:

Whether a trade union can be held liable for damages caused by an illegal strike?

Whether the High Court was justified in rejecting the portion of the award that directed compensation payment by the workers to the management?

RULE:

A trade union cannot be held liable for damages caused by an illegal strike as it is a collective body, and individual members cannot be made accountable for the actions of a few.

Employers are not entitled to compensation for losses incurred during a strike, and such claims fall outside the scope of the Industrial Disputes Act, 1947.

Compensation claims by employers against workers are not industrial disputes under the Industrial Disputes Act, and cannot be settled through arbitration unless the claim is specifically part of an industrial dispute.

The right to strike is fundamental and any employer's right to claim compensation for losses must be balanced against this right.

ISSUE:

Whether Tirumala Tirupati Devasthanam can generally be regarded as an industry?
Whether the persons employed by it are workmen?

Whether they can register themselves into a trade union?

Whether the Devasthanam has locus standi to challenge the order of registration of the Registrar of Trade Unions?

RULE:

The Dominant Nature Test states that if there was a complex of activities in a company, the dominating nature of services and integrated nature of the departments would be the main focus of the test.

The Triple Test is a legal test which was established by the Supreme Court of India in order to determine what exactly an industry is, and what can be classified as one. The requisites to classify the same are;
a) Systematic activity
b) Activity concerned between production and services.
c) Goods and services produced are by the satisfaction of human wants
d) Cooperation between employer and employee

ISSUE:

Whether the Registrar of Trade Unions has jurisdiction to decide the legality and propriety of any election.

Whether the Registrar of Trade Unions has jurisdiction to direct holding of a fresh election.

RULE:

The Registrar of Trade Unions does not have jurisdiction to decide the legality and propriety of any election or to direct holding of a fresh election.

ISSUE:

Whether the word “industry,” as used in Section 2(g) of the Trade Unions Act, carries the same meaning as the word “industry” as defined in Section 2(g) of the Industrial Disputes Act?

Whether employees of a research and development organization are entitled to form a trade union under the Trade Unions Act, even if the organization claims to have no profit motive.

Whether the definition of the word “Industry” contained in the provisions of the Industrial Disputes Act, which is a later enactment, can be read into the provisions of the Trade Unions Act?

Whether the absence of a profit motive affects the classification of an establishment as an “industry” under labor laws.

RULE:

When two statutes are in pari materia (covering the same subject matter), the definition of an ambiguous term in one statute can be interpreted using the definition from the other statute.

The profit motive is not necessary for an organization to be classified as an “industry” if it involves organized activity providing material services, regardless of its commercial intent.

ISSUE:

Whether the Registrar of Trade Unions has jurisdiction to decide the legality and propriety of an election held by a trade union?

RULE:

The powers of the Registrar of Trade Unions are limited to registering the names of elected office bearers, as outlined in Sections 8 and 28 of the Trade Unions Act, 1926.

The Registrar’s role is administrative, not quasi-judicial, meaning they cannot adjudicate disputes over elections or decide disputed legal and factual issues.

ISSUE:

Whether the defendants had wrongfully conspired to injure the plaintiff's business by inducing his customers not to do business with him?

Whether a conspiracy to injure a person's business, even through otherwise lawful means, is actionable under tort law?

RULE:

A conspiracy to injure a person’s business is unlawful, regardless of whether the means employed are legal, if the intention behind the actions is to cause harm.

While the exercise of a legal right, even with malicious intent, does not constitute a civil wrong by itself, it becomes actionable when it results in actual damage.

Unions or individuals can be held liable if they conspire to injure another's business using unlawful means such as threats, blacklisting, or inducing breaches of contract.

ISSUE:

Whether a recognized trade union has the exclusive right to represent all workmen in an industry, including those who are not members of the union?

RULE:

Forming an association is entirely independent and different from its recognition. Recognition of a union confers rights, duties and obligations. Non-conferring of such rights, duties and obligations on a union other than the recognised union does not put it in an inferior position nor the charge of discrimination can be entertained. The members of a non-recognised association can fully enjoy their fundamental freedom of speech and expression as also to form the association.

ISSUE:

What is the power and jurisdiction of the Registrar of Trade Unions to adjudicate the grievances of the rival parties?

RULE:

The Registrar of Trade Unions does not have the authority to determine the legality or propriety of an election or to order a fresh election. Disputes regarding the legitimacy of office bearers in a Trade Union should be resolved through civil suits in a court of competent jurisdiction, as the Trade Unions Act does not grant the Registrar jurisdiction for such matters.